Fiscal Year Ending February 2026 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

Consolidated net sales for the fiscal year ending February 2026 reached a record high of 225.284 billion yen (5.7% increase YoY). Operating income was 37.687 billion yen (1.5% increase YoY), ordinary income was 39.187 billion yen (10.1% increase YoY), and net income attributable to owners of the parent increased to 28.27 billion yen (8.3% increase YoY). Vehicle unit sales remained steady in North America, Europe, and the Asia-Oceania region, supported also by product price increases. Though negatively impacted by increased U.S. tariffs and foreign exchange effects, the reduction in impairment losses on battery-powered shovel components boosted profits. Segment-wise, sales and profit trends varied among Japan, the U.S., the U.K., France, and China, with the U.S. segment suffering significant profit declines due to tariffs and discount impacts.

Outlook

The consolidated earnings guidance for the fiscal year ending February 2027 projects net sales of 244 billion yen (8.3% increase over previous year), operating income of 37.3 billion yen (1.0% decrease), ordinary income of 36.5 billion yen (6.9% decrease), and net income attributable to owners of the parent of 25.9 billion yen (8.4% decrease). Unit sales are expected to increase 3.9% in North America and 6.1% in Europe, totaling a 5.7% increase. Factors contributing to the profit decrease include increased U.S. tariffs, higher transportation costs due to rising crude oil prices, parts price increases, and greater investment in human capital. Foreign exchange losses are also factored in, resulting in a cautious profit outlook. In the medium to long term, stable demand expansion is anticipated driven by housing shortages, expanded infrastructure development needs, and infrastructure construction related to renewable energy as the society transitions toward decarbonization.